5 US Commercial Sectors To Be Affected If De-Dollarization Advances
The phenomenon of de-dollarization is now raging like wildfire, with countries eager to explore alternatives to the US dollar. This phenomenon is now catching pace as Donald Trump, the current president of the US, has threatened countries with tariffs, adding that he will be imposing 100% tariffs on nations moving away from the US dollar, especially the BRICS block. Many analysts in this wake have added how such comments portray a different American stance, stating how these strict policies may end up backfiring, putting stress on the US economic infrastructure.
De-Dollarization To Surge Again?
With countries increasingly showing interest in a multipolar currency narrative, the US dollar is standing at the precipice of a deep transformation. The world is now moving towards a new financial structure that aims to streamline local currency adoption and its usage in global trading ordeals. Moreover, the constant weaponization of the US dollar, alongside its volatile nature coupled with high inflation and economic instability, is also pressuring countries to look for capable USD alternatives.
With Donald Trump coming back to the White House, his plans concerning bolstering the US dollar through tariffs are also being widely criticized, fueling the de-dollarization momentum.
said Kenneth Rogoff, professor of economics at Harvard University, during a panel discussion at the event.
5 Sectors To Be Impacted If USD Hegemony Is Jeopardized
If the US dollar supremacy is compromised, these 5 sectors in particular may sustain serious issues in the long haul.
- Financial Services
- Commodities
- Technology
- Transportation
- Tourism and Real Estate
Reduced US dollar-denominated deal flows and demand may obstruct the financial sector. This may cause issues in the domain if de-dollarization advances.
In the commodities domain, the arenas of USD-denominated oil, gas, and precious metals may take a hit.
In the sector of technology, companies relying on US dollar-dependent transactions and payment systems may document reduced demand.
The arena of shipping may get hampered as well due to payment systems shifting away from the dollar. The domain of tourism and real estate may also plummet as USD-denominated areas continue to portray increased complexity and low USD acceptance.
